Airo International Research Journal April, 2017 Volume XI, ISSN:

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2 CHALLENGES AND OPPORTUNITIES OF E. COMMERCE Poonam Saini Assitant Professor of Commerce Declaration of Author: I hereby declare that the content of this research paper has been truly made by me including the title of the research paper/research article, and no serial sequence of any sentence has been copied through internet or any other source except references or some unavoidable essential or technical terms. In case of finding any patent or copy right content of any source or other author in my paper/article, I shall always be responsible for further clarification or any legal issues. For sole right content of different author or different source, which was unintentionally or intentionally used in this research paper shall immediately be removed from this journal and I shall be accountable for any further legal issues, and there will be no responsibility of Journal in any matter. If anyone has some issue related to the content of this research paper s copied or plagiarism content he/she may contact on my above mentioned ID. ABSTRACT In today's world internet has been made the world, "shrink Today customers are not bounded only the the local market but they expanded their search to international market. This paper has Analyzed some international Market. This paper h as Analyzed some of the Challenge and opportunities of e-commerce. Growth of E-Commerce trends is becoming more popular day by day as per the Market demand. E-commerce can best be described as buying and selling of good and services over the internet. This includes both business to business (B2B) and business to consumer (B2C) transactions. E-commerce technology is changing in a big way. In India the e-commerce industry hs come a long way since, its early days. Now a day's market has been matured and lot of new players has been entered into the market space. E-commerce in India has been experiencing remarkable growth successfully changing the way people transact. People today can shop literally every where with in minutes be it their workstations or homes and most importantly, at any time of the day at their leisure. According to the present scenario we can imagine the growth of overall E commerce that will increase with the emerging market of India. This paper is out come of a review of various research studies carried out on E-commerce. Key World: E Commerce, Online, Internet, Ethical issues, challenges [2]

3 Introduction: By E-commerce we mean the use of global internet for purchase and sale of goods, services, including services and support after sales. According to the Frederick J. Rigsins and Hyenn-Suk Rhee, a recent Pilot survey show that some Poractitioners and managers view. E- Commerce :- Buying and selling goods and product over internet. E Commerce has shows tremendous growth in the E- Commerce segment. E- Commerce has became an important tool for small and large business world wide, not only to see to customers but also engage them. With E-commerce then, you can buy almost anything you wish for without actually touching the product physically and inquiring the salesman n numbers of times before placing the final order. Here is a beautiful picture deficiting how has human life evolved to adopt to the digital world and hence trading over the internet. As seen from Pizza and Potted plant of pair of shoes, we have everything on sale on the internet available in the tempting snapdeal.com, Amazon, Ebay, Naptol offerce etc are some of the most popular E-commerce websites. Methdology: The research paper used only secondary data that has been collected from various articles, journals, books, websites etc. This has been used to study the conceptual frame work, defination, present trends and some of the challenge and opportunity of E-commerce in India. All the data included in the secondary base and proper reference has been wherever necessary. [3]

4 Categories of E-Commerce: E-Commerce can be broken into these major categoreis B2B, B2C, C2B and C2C show in diagram. B2B (Business to Business):- Companies doing business with each other such as manufactures selling to distributors and wholesalers selling to retailers. B2B identifies both the seller as well as the buyer as business entities. B2B covers a large number of applications, which enables business to form relationships with their distributers, re sellers, supplier etc. Following are the leading items in B2B E- commerce electronics, shipping, warehousing, moter vehicles, paper, food, agriculture. Key Technologies : Electronic Data interchange internet, intranet, extranet B2C (Business to Consumer):- The B2C marketing India generates the bulk of [4]

5 revenues across the consumer facing modesl of E-commerce. Business selling to the general Public typically through categories utilizing shopping cart software in which a business sales product or services directly to consumers over the internet. A B2C business is one that sells products or services directly to the consumer. C2B (Consumer to Business):- In this Model individual customer offer to sell Product and services to companies who are prepared to purchase them. B2C or Commerce between company and customers involves customers gathering information, purchasing phsical goods or information goods and for information goods receiving products over an electronic network. C2C (Customer to Customer) :- Customer to Customer is a business model that facilities an environment usually online where customer can trade with each other. It perheps has the greatest potential for developing the new markets. C2C websites from a perfect plateform for buyers and sellers who wish to buy and sell product of similar internet. [5]

6 Challenges of E-Commerce in India E - infrastructual issue:- Internet is the backbone of E-commerce unfortunatly in India internet Penepration is so far dismally low at 0.5% of the population penetration of personal computer as low as 3.5 thousand of population and Penteration of Telephone only 2.1% of population of E-commerce is not easily researchable remain to the common man Personalisation: Since there are thousand and lacks of product options availabe on E-commerce websites, it is mandatory to know the buying trend of a user and suggest better options on what they are looking for. Quality: Unlike electronics apparels, footwear and other domains that sell standard and branded merchandise home decor and food servicing industry face on the real challenge of delivering a quality product since most of the home decor products are customer made, it is of key importance of rise a stringent quality check at different stages of manufacturing of product and then aggregrating trust worthy seller in case of multi vendor market placer Cash on delivery is the preferred payment mode: Low credit card Penetration and low trust in online transactions has led to cash on delivery being the preferred pay ment option in India. Unlike [6]

7 electronic payments, manual cash collection is laborious, and expensive. Postal Address are not standralized: If you place an online order in India, you will quite likely get a call from logistics company to ask you about your exact location clearly your address is not enough. This is because there is little standardization in the way postal address are written. Last mile issue add to E-commerce logistics problems. dealing with products like approval, handicraft, jewellery have to face challenges to sell their products as the buyers want to see and touch before they buy these stuffs. Some challenges of E-Commerce faced by early stage start ups in India 2017 The internet users in India are growing at an astronomical rate. According to reports, internet users in India is to grow by at last 50 million years till It has become the unsaid truth that E-Commerce has changed the way we shop. Challenges Here are some key challenges Indian Customers Return Much of in India E-Commerce startups should be their products they buy online : It is true that E-commerce in India has lots of time buyer return the product 1. ready to handle. Customer acquisition - The process of because they are still not sure about getting customer to come on your E- what to expect from e-commerce Commerce websites has a customer website dues, purchasers fall prey to hard sell finally when the product is delivered they started facing request acquisition cost. It involves spending a considerable amount on marketing and advertisement. According to experts, It and return the good therefore currently varies between Rs. 500 to 1,000, customers regret in the biggest problem majorly in India. Touch and Feel = Indian customer 2. are more comfortable in buying which is not sustainable for early stage E- Commerce startups. Rising Fund- Investment in startup halved in 2016 from 2015 though it could pick up product physically, companies in 2017, but it will not be easy. Experts [7]

8 believe that believes 2017 will be more about "Cautions viable growth," while 2015 was growth at any cost and Sawa a focus on unit economics. 3. Shift to Cashless Payment- In a country of 1.2 billion population with cash-on-delivery being preferable mode of payment, even the e-commerce giants are spending huge sums on marketing and advertising to encourage customers to order after 8 th November, Early stage e-commerce companies have to come-up with innovative ideas and marketing strategies to generate revenues. 4. Logistics and Supply chain- Facing problems in logistics and supply chain is a good sign as it shows positive growth in the number of transactions, hence the growth of the company. But these problems should be solves pro-actively. An average Indian consumer has great trust issues relating to e- commerce business and having a bad product experience can only worsen it and will be detrimental to the reputation of the business. 5. Constant reinvention- There is a constant need to reinvent and innovate to meet customer's expectation. Due to advent in technology and competition, the challenge in e-commerce is to provide better and earlier to stay ahead in the market. OPPORTUNITIES OF E- COMMERCE IN INDIA It helps business globalize: E- Commerce by minimizing cost enables company especially small ones to make information on its product and services available to all the potential customers spread over world wide. This is well confirmed by Amazon.com founded by Jeff Bezoes the largest book store in the net by taking away a large amount of sales from the traditional booksellers in India the experience of re infusion-on-the-net presents the similar case. Critical Healt of seller: Losers and gainers according to a study by Accel Partners online shopping of physical good in India will grow to US $ 8.5 billion in 2016 and number of online shoppers in India will be more than double to 40 millions. The internet user base is predicted to increase 300 million by Improving Customer Experience with varied offering and options: [8]

9 With the aderent of technology, online retailers are divising attractive delivery options such as same day delivery or deliver with an hour, perks on buying from mobiles, apps your door for counsumers that are leading improved customers experience, we might also see adopting on international practices such as digital or experiential stores and show rooms, pop up and fulfillment stores and drones that will fascinate the Indian market. Social Media: Another important consideration is the social aspect and marketers have relized its importance very well. Product and service feedback via social media channels have an impressionable effect on the minds of the large customer base. App only approach: Statistics suggest that the future of internet lies in mobiles experts says more than 500 millions people in India will use the internet by 2018 and 70-80% of them will access the web on mobile phones. This will causes all major players to switch to app only model about two thirds of its online traffic of flipkart comes from users in small cities and town. Credit Cards declining and debit card on the rise: The decline in the number of active credit card can be attributed to the fact that banks became stringent about issuing new credit cards after the financial down turn in 2008 and withdraw cards from defaulters. The number of debit card is on the rise due to the ncreasing access of people to banking services. Leading to more consumers buying online: Consumers attitude to E-Commerce has changed. This is apparant from the growth in the number of users transacting online from 3 million in 2007 to 11 millions in The number of projected to rise to 38 million by A fastpaced urban life style, dual income families and parking space constraints at major malls have contributed to this shift in the preception of consumer. Conclusion - E-Commerce is changing the way of buying and selling of product and services in [9]

10 India. E-Commerce is future of shopping due to E-Commerce the gap has been reduced between manufacturer and consumer. The future of E-Commerce in India would be bright in the upcoming years if all essential factors would be implemented by establishing cyber and have their benefits as per people wish. The expansion of E- Commerce has been developed in rural as well as urban areas in region able cost for Consumption because of that more people are getting linked with E-Commerce and the ratio of that is getting increase day by day. E-Commerce provides tremendous opportunities in different areas but it requires careful application for consumer protection issue. It is clear that in coming years customers will give order for their products from their homes and form their office. Mobiles and Computer are widely used in India now a day and user are eager to do shopping in internet. On the behalf of the study and experts views the future of E- Commerce would be very bright in India if implemented with the all essential factors. 2. E-Commerce-Concepts-Models- Strategies C.S.V Murthy- Himalaya Publishing House articles/ what is e-commerce e- commerce/ecommerce_b2b_made.htm amp/ s/ inc42.com/ resources/ welltraid.in/blog/ amp/ techstory.in/ e-commerce challenge in India/ 8. Intervention research Journal of Multi disciplinary studies, vol.3, issue.3 impact factor (GIF), ( FS) 9. International journal of engineering and computer science ISSN: , volume5, issue11. Reference - 1. International Journal of emerging trends and technology in computer science-issn [10]